Software solution touted as way to help cable companies ration, monetize bandwidth

Active Broadband Networks Ensures Accuracy of Internet Usage Data in DOCSIS Networks - Yahoo! Finance: FRAMINGHAM, MA--(Marketwire - Oct 9, 2012) - Active Broadband Networks, an innovative supplier of next-generation operation support systems (OSS) for broadband providers, today announced enhancements to its software that improve operator visibility into the integrity of Internet protocol detail record (IPDR) data collected from Cable Modem Termination Systems (CMTSs) in DOCSIS networks. Cable operators rely on IPDR data to compute subscriber Internet usage for usage metering and usage-based pricing as well as a variety of broadband service management applications, so accuracy is a critical requirement as they seek to measure, manage and monetize increasing Internet usage.

When the business model is based on getting more out of existing customers rather than expanding to get new ones, this makes perfect sense.  A key component is commoditizing Internet bandwidth so it can be segmented into discrete unit prices. The company issuing the above news release is selling a tool to cable companies to help them do just that.

Internet Providers Testing Metered Plans for Broadband - NYTimes.com

There’s a clash between what users expect from broadband service and what is actually delivered to them, said Chris Balfe, the president of Glenn Beck’s media company, which created an online TV channel nearly a year ago. He has noticed sluggishness at home when trying to view YouTube videos. “As a broadband video provider it’s frustrating, but as a user it’s absolutely infuriating,” he said.

This New York Times piece makes the case for community owned fiber to avoid incumbent cableco and telco manipulation of their natural duopoly (or monopoly in some cases) to create bandwidth scarcity.  It's important to create a perception of bandwidth scarcity in order to preserve bandwidth rationing and the unit-based billing of their decades-old business models.  Communities can and should disrupt that business model and build their own fiber to the premises networks.  Enough is enough.

FCC ruling heralds regulatory end of "broadband" era

The U.S. Federal Communications Commission's decision this week barring providers of fixed premises wireline Internet connectivity from selectively rationing (or blocking) bandwidth based on the source and/or content marks the regulatory beginning of the end of the "broadband" era. Whereas broadband once defined a premium telecommunications service offered at a premium price, the FCC is effectively declaring that an Internet connection is an Internet connection regardless of what information or content consumers receive from it. ISPs cannot devote greater bandwidth to some information or content (for example, their own proprietary content) while affording less bandwidth to other information or content.

This is the right decision that recognizes the Internet as a de facto common carrier telecommunications network similar in that regard to traditional voice telephone service. The large national legacy telcos and cable companies warned before the FCC adopted the ruling that it would discourage capital investment in their infrastructures, which the FCC noted early this year continue to leave an estimated 7 million U.S homes offline.

There's no evidence the business case for more network investment by the large national legacy telcos and cablecos would have been improved had the commission come down on the other side of the issue. Their business models are constrained by the need to pay their shareholders generous dividends as they have done for decades and by high labor costs to modernize and build out their plants outside of densely populated urban and suburban areas.